Wednesday, July 30, 2014

How to Join the Usdcad Bull Party!

On July 6th, I predicted a bullish move of this pair and it hasn't disappointed a bit as I have been picking profits along the way, hope someone is doing the same?. You can read that analysis HERE

For those that didn't join the party, I perceive an opportunity to be a part at a crucial level that promises a beautiful risk/reward.

I still maintain a general bullish bias on this pair, but as we all know that markets retrace at some crucial zones to change its movement or resume.

I will be going by my usual wave counts and harmonic pattern analysis.

Starting with 1hr time frame, a crucial gartley will be completed at 1.0875-1.0890 ( a potential reversal zone ) and resting on different resisting horizontal and diagonal lines.

On the 4h chart, there is an end of wave 5 pattern about to be completed, probably at the zone mentioned earlier, if that should be the case, a reversal is imminent to drive price to indicated ''Quick target zones'' before the bullish move resumes.

In other words, price broke 1.0820 in high momentum, a retest follows and the bulls continue.

The expected short bear is for short nap trades and if 1.0820 is bridged downward in high momentum, well, the party might be over.

Conversely, if the aforementioned reversal zone is broken high and high, the bus is not waiting now and it's all well.

Note: Make sure you understand this analysis before interpretation. It's not a call for trade. It's the view of a trader and caution should be taken.It's for educational purpose and not a call for trade. You can contact me if you have any questions